3 Things to Know Before Trading

Atlanta, GA 5/3/12 (StreetBeat) -- Stocks were mixed but little changed in Asian trade; note that the Nikkei was closed today and will also be tomorrow because of the Golden Week holiday in Japan. The Hang Seng fell a quarter percent and Australia was down a slight fraction, but Shanghai rose a tick or two. European indexes are broadly higher this morning, with the Dax up more than one percent and the Footsie is better by a half percent or so. US stock futures are up a slight fraction as I write.

*The April reading of China’s Non-manufacturing Purchasing Managers Index was down about two points from the month before to 56.1.

*The ECB kept rates and policy steady, as expected. Bank President Draghi will tell us all about the meeting when his presser begins at 7:30am CDT.

*Spain and France were able to sell debt today without much trouble, yields in those countries have tightened a bit to the German benchmark this morning.

*In April UK house prices were down 0.2% on a month on month basis, according to Nationwide, but had been expected to increase a half percent.

*The April reading of the UK’s service sector PMI fell two points on the month to 53.3, a one point drop had been forecast; it is the lowest results since November.

*The Challenger Groups says that in April there were 40,559 job cut announcements. This total is up 2,679 from the month before and is up 11.2% from last April.

*Chain stores are reporting their April same store sales results this morning; among those already out are: Fred’s -0.3% versus same store results from last April; Stein Mart -1.6%; Bon Ton -5%; Limited Brands +6%; and Cato Stores -6%.

*The weekly report on Initial Jobless Claims is due out at 7:30am CDT, it is expected to be 379k. Also due out at 7:30am is the preliminary Q1 reading of Non-farm Productivity and Unit Labor Costs; which are forecast to be -0.6% and +2.7%, respectively. The April reading of the ISM Non-Manufacturing Composite Index is due out at 9:00am CDT, it is expected to be 55.3; it was 56.0 in March.

*The weekly report on inventories of Natural Gas is due out at 9:30am CDT; it is expected to show an increase of 30 bcf.

*The Fed is scheduled to buy Treasuries today that are due to mature between 2/15/36 and 2/15/42; the results of the operation will be announced just after 10:00am CDT.

*Fed speak on the calendar today includes: SF Fed boss Williams at 10:00am CDT; Atlanta Fed’s Lockhart at noon CDT; and Philly Fedster Plosser at 12:30pm CDT.

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